Question

A practice manager has purchased a new laptop computer, accompanying software, a new copy machine, and a new autoclave. Which of the following document is the most appropriate place to record these new additions to the clinic?

1) Accounts payable summary
2) Inventory of equipment
3) Accounts receivable summary
4) Tax ledger
5) Inventory sold report

Answer 1

The Inventory of equipment document is the most appropriate place to record the new laptop computer, software, copy machine, and autoclave because it meticulously tracks all of the clinic's tangible assets for asset management and financial reporting.

Step-by-step explanation:

When a practice manager purchases new assets for a clinic, such as a laptop computer, software, a copy machine, and an autoclave, these items should be recorded in the Inventory of equipment. This document serves as a detailed list of all physical assets present in the business, helping in tracking the usage, condition, and location of the assets, as well as facilitating asset management and financial reporting.

The Inventory of equipment is a critical element of a business's fixed assets management and is crucial for annual financial auditing, calculating depreciation, and for insurance purposes. This inventory will be updated to reflect the current status of the clinic's tangible assets and is different from the accounts payable summary, accounts receivable summary, tax ledger, or inventory sold report, which serve other specific financial purposes.